| [May 05, 2015] |
 |
GenMark Diagnostics Reports Q1 Financial Results
GenMark Diagnostics, Inc. (Nasdaq:GNMK), a leading provider of
automated, multiplex molecular diagnostic testing systems, today
reported first quarter 2015 financial results.
As previously reported, revenue for the first quarter of 2015 was $10.1
million, an increase of 28% over the prior year period. During the
quarter, 22 additional XT-8 analyzers were placed in end-user
laboratories, resulting in a total installed base of 562 analyzers
within the U.S. market.
Gross profit for the first quarter was $6.1 million, or 61% of revenue,
compared with $4.2 million, or 58% of revenue in the same period of 2014.
"Our XT-8 products continue to drive excellent revenue growth and gross
margin," said Hany Massarany, President and Chief Executive Officer of
GenMark. "Last week we showcased our ePlex sample-to-answer system at
major industry exhibitions in the U.S. and Europe. Customers were very
enthusiastic about the functionality of ePlex, as well as the assay
designs and initial data presented at these meetings. We remain on track
for the European launch of ePlex in the fourth quarter of this year,"
added Massarany.
Operating expenses for the first quarter of 2015 were $16.1 million
compared to $13.1 million in the same period of 2014. The 24% increase
was mainly driven by personnel related expenses across the organization
as the Company prepares for the upcoming launch of the ePlex system.
Loss per share was $0.24 per share for the first quarter of 2015
compared to a loss of $0.21 per share in the same period of 2014.
The Company ended the quarter with $71.0 million in cash and cash
equivalents and intends to continue utilizing its cash balances to
invest in the global commercialization of the ePlex platform.
Business Outlook
For full year 2015, the Company continues to expect revenue in the range
of $38 to $40 million and gross margin in the range of 53-55%. The
Company expects to place approximately 50 XT-8 analyzers in the first
half of 2015, and 25-35 additional XT-8 analyzers in the second half of
the year.
The Company will be hosting a conference call to discuss first quarter
2015 results in further detail on Tuesday, May 5, 2015 starting at 4:30
p.m. Eastern Time. The conference call will be concurrently webcast. The
link to the webcast will be available on the GenMark Diagnostics, Inc.
website at www.genmarkdx.com
under the investor relations section and will be archived for future
reference. To listen to the conference call, please dial (877) 312-5847
(US/Canada) or (253) 237-1154 (International) and use the conference ID
number 21561248 approximately five minutes prior to the start time.
ABOUT GENMARK DIAGNOSTICS
GenMark Diagnostics is a leading provider of automated, multiplex
molecular diagnostic testing systems that detect and measure DNA and RNA
targets to diagnose disease and optimize patient treatment. Utilizing
GenMark's proprietary eSensor® detection technology,
GenMark's eSensor® XT-8 system is designed to support a broad
range of molecular diagnostic tests with a compact, easy-to-use
workstation and self-contained, disposable test cartridges. The eSensor®
detection technology is also incorporated into GenMark's
sample-to-answer system, ePlex™. For more information, visit www.genmarkdx.com.
SAFE HARBOR STATEMENT
This press release includes forward-looking statements regarding events,
trends and business prospects, which may affect our future operating
results and financial position. Such statements, including, but not
limited to, those regarding the timely commercialization of our ePlex
system and our future financial performance, are all subject to risks
and uncertainties that could cause our actual results and financial
position to differ materially. Some of these risks and uncertainties
include, but are not limited to, our ability to successfully
commercialize our ePlex system and its related test menu in a timely
manner, constraints or inefficiencies caused by unanticipated
acceleration and deceleration of customer demand, our ability to
successfully expand sales of our product offerings outside the United
States, and third-party payor reimbursement to our customers, as well as
other risks and uncertainties described under the "Risk Factors" in our
public filings with the Securities and Exchange Commission. We assume no
responsibility to update or revise any forward-looking statements to
reflect events, trends or circumstances after the date they are made.
|
|
|
|
|
|
|
GENMARK DIAGNOSTICS, INC.
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In thousands, except par value)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
Current Assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
36,913
|
|
|
$
|
36,855
|
|
|
Marketable Securities
|
|
34,041
|
|
|
33,651
|
|
|
Accounts receivable - net of allowances of $2,702 and $2,702,
respectively
|
|
4,444
|
|
|
4,889
|
|
|
Inventories
|
|
2,148
|
|
|
2,137
|
|
|
Prepaid expenses and other current assets
|
|
770
|
|
|
575
|
|
|
Total current assets
|
|
78,316
|
|
|
78,107
|
|
|
Property and equipment, net
|
|
11,354
|
|
|
11,052
|
|
|
Intangible assets, net
|
|
1,806
|
|
|
1,870
|
|
|
Restricted cash
|
|
758
|
|
|
758
|
|
|
Other long-term assets
|
|
115
|
|
|
183
|
|
|
Total assets
|
|
$
|
92,349
|
|
|
$
|
91,970
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable
|
|
$
|
3,390
|
|
|
$
|
3,468
|
|
|
Accrued compensation
|
|
3,388
|
|
|
5,172
|
|
|
Loan payable
|
|
-
|
|
|
-
|
|
|
Other current liabilities
|
|
2,832
|
|
|
3,653
|
|
|
Total current liabilities
|
|
9,610
|
|
|
12,293
|
|
|
Long-term liabilities
|
|
|
|
|
|
Deferred rent
|
|
1,402
|
|
|
1,445
|
|
|
Long term debt
|
|
9,502
|
|
|
-
|
|
|
Other non-current liabilities
|
|
249
|
|
|
208
|
|
|
Total liabilities
|
|
20,763
|
|
|
13,946
|
|
|
Stockholders' equity
|
|
|
|
|
|
Preferred stock, $0.0001 par value; 5,000 authorized, none issued
|
|
-
|
|
|
-
|
|
|
Common stock, $0.0001 par value; 100,000 authorized; 42,128 and
41,859 shares issued and outstanding as of March 31, 2015 and
December 31, 2014, respectively
|
|
4
|
|
|
4
|
|
|
Additional paid-in capital
|
|
343,925
|
|
|
340,502
|
|
|
Accumulated deficit
|
|
(272,341
|
)
|
|
(262,472
|
)
|
|
Accumulated other comprehensive loss
|
|
(2
|
)
|
|
(10
|
)
|
|
Total stockholders' equity
|
|
71,586
|
|
|
78,024
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
92,349
|
|
|
$
|
91,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENMARK DIAGNOSTICS, INC.
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
Revenue
|
|
|
|
|
|
Product revenue
|
|
$
|
10,012
|
|
|
$
|
7,866
|
|
|
License and other revenue
|
|
95
|
|
|
47
|
|
|
Total revenue
|
|
10,107
|
|
|
7,913
|
|
|
Cost of revenue
|
|
3,991
|
|
|
3,591
|
|
|
Gross profit
|
|
6,116
|
|
|
4,322
|
|
|
Operating expenses
|
|
|
|
|
|
Sales and marketing
|
|
3,693
|
|
|
2,979
|
|
|
General and administrative
|
|
3,671
|
|
|
2,933
|
|
|
Research and development
|
|
8,779
|
|
|
7,270
|
|
|
Total operating expenses
|
|
16,143
|
|
|
13,182
|
|
|
Loss from operations
|
|
(10,027
|
)
|
|
(8,860
|
)
|
|
Other income (expense)
|
|
|
|
|
|
Interest income
|
|
36
|
|
|
86
|
|
|
Interest expense
|
|
(73
|
)
|
|
|
(1
|
)
|
|
|
Other income (expense)
|
|
217
|
|
|
(2
|
)
|
|
|
Total other income (expense)
|
|
180
|
|
|
83
|
|
|
Loss before provision for income taxes
|
|
(9,847
|
)
|
|
(8,777
|
)
|
|
Provision for income taxes
|
|
22
|
|
|
6
|
|
|
Net loss
|
|
$
|
(9,869
|
)
|
|
|
$
|
(8,783
|
)
|
|
|
Net loss per share, basic and diluted
|
|
$
|
(0.24
|
)
|
|
|
$
|
(0.21
|
)
|
|
|
Weighted average number of shares outstanding, basic and diluted
|
|
41,774
|
|
|
41,079
|
|
|
Other comprehensive loss
|
|
|
|
|
|
Net loss
|
|
$
|
(9,869
|
)
|
|
|
$
|
(8,783
|
)
|
|
|
Foreign currency translation adjustments
|
|
9
|
|
|
-
|
|
|
Net unrealized gains (losses) on available-for-sale investments, net
of tax
|
|
(17
|
)
|
|
12
|
|
|
Comprehensive loss
|
|
$
|
(9,877
|
)
|
|
|
$
|
(8,771
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENMARK DIAGNOSTICS, INC.
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2015
|
|
2014
|
|
Operating activities
|
|
|
|
|
|
Net loss
|
|
$
|
(9,869
|
)
|
|
$
|
(8,783
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
797
|
|
|
574
|
|
|
Amortization of premiums on investments
|
|
73
|
|
|
198
|
|
|
Amortization of deferred debt issuance costs
|
|
49
|
|
|
-
|
|
|
Gain on sale of investment in preferred stock
|
|
(223
|
)
|
|
-
|
|
|
Stock-based compensation
|
|
2,339
|
|
|
1,389
|
|
|
Non-cash inventory adjustments
|
|
402
|
|
|
219
|
|
|
Other non-cash adjustments
|
|
20
|
|
|
-
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
445
|
|
|
283
|
|
|
Inventories
|
|
(366
|
)
|
|
169
|
|
|
Prepaid expenses and other assets
|
|
(216
|
)
|
|
107
|
|
|
Accounts payable
|
|
(775
|
)
|
|
(449
|
)
|
|
Accrued compensation
|
|
(919
|
)
|
|
10
|
|
|
Other liabilities
|
|
(22
|
)
|
|
(101
|
)
|
|
Net cash used in operating activities
|
|
(8,265
|
)
|
|
(6,384
|
)
|
|
Investing activities
|
|
|
|
|
|
Change in restricted cash
|
|
-
|
|
|
-
|
|
|
Purchase of available-for-sale securities
|
|
(14,797
|
)
|
|
(13,039
|
)
|
|
Payments for intellectual property licenses
|
|
(550
|
)
|
|
-
|
|
|
Purchases of property and equipment
|
|
(411
|
)
|
|
(1,149
|
)
|
|
Proceeds from sales of marketable securities and preferred stock
|
|
223
|
|
|
5,499
|
|
|
Maturities of short-term investments
|
|
14,350
|
|
|
7,250
|
|
|
Net cash used in investing activities
|
|
(1,185
|
)
|
|
(1,439
|
)
|
|
Financing activities
|
|
|
|
|
|
Principal repayment of borrowings
|
|
(5
|
)
|
|
(42
|
)
|
|
Proceeds from borrowings
|
|
10,000
|
|
|
-
|
|
|
Costs associated with debt issuance
|
|
(700
|
)
|
|
-
|
|
|
Proceeds from stock option exercises
|
|
222
|
|
|
25
|
|
|
Net cash provided by (used in) financing activities
|
|
9,517
|
|
|
(17
|
)
|
|
Effect of exchange rate changes on cash
|
|
(9
|
)
|
|
-
|
|
|
Net decrease in cash and cash equivalents
|
|
58
|
|
|
(7,840
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
36,855
|
|
|
35,723
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
36,913
|
|
|
$
|
27,883
|
|
|
Non-cash investing and financing activities
|
|
|
|
|
|
Transfer of systems from property and equipment into inventory
|
|
$
|
48
|
|
|
$
|
54
|
|
|
Property and equipment costs incurred but not paid included in
accounts payable
|
|
$
|
818
|
|
|
$
|
1,022
|
|
|
Supplemental cash flow disclosures
|
|
|
|
|
|
Cash paid for income taxes, net
|
|
$
|
17
|
|
|
$
|
8
|
|
|
Cash received for interest
|
|
$
|
109
|
|
|
$
|
284
|
|
|
Cash paid for interest
|
|
$
|
73
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
[ Back To TMCnet.com's Homepage ]
|
